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Zohran Mamdani, the Democratic nominee for mayor of New York City, plans to open government-run grocery stores, if elected, to combat high food prices, again sparking a debate over whether cities should be running grocers.
In a campaign video, he described the stores as a "public option" like in health care and said they would "operate without a profit motive.” The stores would not pay rent or property taxes, potentially reducing overhead with the savings passed onto consumers. They would also buy and sell at wholesale prices, centralize warehousing and distribution, and partner with local neighborhoods on products and sourcing.
@zohran_k_mamdani #Grocery #prices are out of control. One in 4 kids in #NYC isn’t getting enough to eat. It’s unacceptable. Today I’m announcing a major new proposal to tackle price gouging and bring down costs: city-owned grocery stores. These stores will sell cheaper groceries because they won’t have to pay rent and property taxes, passing on those savings to shoppers. They will buy and sell at wholesale prices with the goal of lowering costs, not turning a profit. New York City already spends tens of millions of dollars in ineffective tax subsidies for corporate grocery stores to operate in neighborhoods with limited access to fresh food. Instead, we should use our public money for a public solution. When so many New Yorkers are struggling to get enough to eat, we need big solutions that will work. #nycmayor #bk #bronx #queens #manhattan #statenisland #inflation #costofliving #wholesale #foodtiktok #elections #politics ♬ City Life - Danail Draganov
Mamdani projects it will take a total of $60 million to launch one grocery store in each of New York City’s five boroughs. He has previously said he will redirect some of the $140 million in private grocery store tax breaks to finance the pilot program.
Mamdani's Grocery Plan Draws Criticism
The city-run grocers are part of Mamdani’s broader plan to reduce the cost of living for New York City residents, with his other proposals including freezing rent on rent-stabilized apartments as well as free child care and bus services. The grocery stores also address food deserts — or areas, often in low-income communities, where residents have limited access to affordable and healthy food options.
Mamdani, a socialist candidate and current state assemblyman, told The Food & Environment Reporting Network, “New Yorkers have been failed by a market-only approach and there is a desperate need for a public option for produce.”
The city-grocery plan has drawn significant pushback, including protests from John Catsimatidis, the CEO of grocer Gristedes, and bodega owners questioning how they can compete against government-subsidized grocers.
A number of business owners expressed concerns to City Journal about corruption arising from such a program.
The major charge by critics is that even with the tax and rent breaks, a city-run grocer can’t price competitively against the national retailers that benefit from the economies of scale.
City-Run Grocers Have a Mixed Track Record
Often cited are the failures of city-run grocers in other cities. The Florida town of Baldwin Market closed its town-owned grocer in 2024 after low foot traffic made it impossible for the town to break even on its expenses, according to The Florida Times-Union. The city of Erie in Kansas in 2024 leased its town-run grocery store to an independent operator after losing money for four years.
In February of this year, the city of Chicago ditched its plans to open municipal-owned grocery stores, citing difficulties securing a qualified operator. Instead, it’s pursuing a public market, envisioning a space that provides basic groceries while supporting local farmers and small vendors.
Chicago’s move to open a city-run grocer came after Whole Foods closed a store in Chicago in 2022 after six years in operation, despite receiving $10 million in tax incentives.
Still, city-run grocers operate in two other Kansas towns, St. Paul and Caney. This year, the city of Madison in Wisconsin is opening a city-owned grocery store; and Atlanta is using tax dollars to open two grocery stores this year. In all cases, the communities couldn’t attract a private sector grocer to solve a food desert situation.
Atlanta’s mayor, Andre Dickens, said earlier this year on social media, “We’ve reached out to grocery chains and even offered incentives — no takers.”